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UHY Canada U.S. Tax Team available to assist with FBAR Reporting
Wednesday, July 15, 2009
(July 15, 2009) The Internal Revenue Service has extended the deadline for filing a report on foreign bank accounts to Sept. 23, 2009 from the original June 30, 2009 deadline.
What is FBAR?The IRS recently issued a revised version of Form TD F 90-22, “Report of Foreign Bank and Financial Accounts,” also known as an FBAR, which requires U.S. taxpayers to disclose their foreign deposits and investments.
UHY Canada US Tax Team (“UHY CUTT”) member Todd Bensley (Detroit) states that “Taxpayers who only recently learned of their FBAR filing obligation should file the FBAR report according to the instructions and attach a statement explaining why the report is filed late. The delinquent FBAR, along with a copy of the individual’s 2008 tax return, is supposed to be submitted to the IRS’s Philadelphia Offshore Identification Unit. by Sept. 23, 2009. In such a situation, the IRS states that it will not impose a penalty for failure to file the FBAR, especially when the taxpayer only recently learned of the need to file an FBAR.”
In addition, in June 2009 the IRS postponed a planned expansion in the definition of “United States person” that would have extended the FBAR reporting requirements to people who are not citizens or residents of the U.S.
The IRS has recently added 21 questions to the Frequently Asked Questions page about the FBAR, including about “John Doe summonses” which the IRS has been serving on UBS in an effort to learn the identities and holdings of up to 52,000 U.S. taxpayers with accounts at the Swiss bank.
FBAR Voluntary Disclosure Process
The IRS also clarified several other procedures that will help taxpayers through the voluntary disclosure process. Taxpayers who failed to file a required FBAR for previous years but who reported and paid tax on all taxable income in such years may file the delinquent FBAR's with an attachment explaining the failure to timely file and copies of tax returns for the relevant years. The IRS has indicated that it will not impose penalties for late FBAR's that satisfy the requirements of this voluntary compliance program.
UHY CUTT Chairperson Jonathan Levy (Montreal) adds “UHY CUTT members are assisting taxpayers work through issues relating to the FBAR filing requirements. Individuals should contact any of the following members if assistance is required”.
UHY Canada U.S. Tax Team
Jonathan Levy, Chairman
514-282-1836 ext. 275